None of us likes to think about dying, but it’s vital to consider what would happen to your family or loved ones should the worst happen.
Having life insurance in place means they will receive a lump sum when you die, easing the financial pressure at a time when they’ll have plenty of other things to worry about.
But once you’ve got your life policy, you need to keep it up to date and fit for purpose. That means reviewing the amount of cover it provides, on a regular basis, so you have the protection you need as and when your circumstances alter.
Here’s what you need to know…
Why you need cover - and when to review it
If you’ve got anyone who is financially dependent on you, you need life insurance to provide for them if you die before they become financial independent.
But it isn’t quite as simple as taking out a policy and leaving it at that.
For example, you might consider increasing the sum insured – the amount the policy will pay out – when children come along, since they are wholly dependent on you for many years.
You’ll also need to take another look at your cover if you change jobs. You might be able to afford higher premiums and increase your insurance. Or, if you’ve had to take on a lower paid job, you might want to reduce your cover and pay lower premiums.
And your employer might provide a chunk of cover related to your annual salary – or it might not.
When the kids have grown up and flown the nest, you’ll need to review your cover again as it’s not worth shelling out for cover if there’s no-one who is financially dependent on you.